Nov 19, 2012

Student Loan Forgiveness For Those Found Disabled By Social Security

The Education Department enacted a crucial reform on behalf of borrowers
who become disabled, issuing new rules earlier this month that make it
easier for these borrowers to get their federal student loans forgiven.

The rules,
which the department has not publicly announced, for the first time
recognize certain disability findings by the Social Security
Administration as sufficient grounds to discharge student loans. This
will allow many borrowers to avoid a lengthy double review to determine
whether they are truly disabled. Under federal law, borrowers who
develop severe and lasting disabilities are entitled to get their loans
forgiven.